There are plenty of mixed signals on the economy today. Each bad report is followed by something good only to be followed yet again by something negative. This is actually a good thing. It wasn’t that long ago that the news was almost universally bad. The mixed signals are actually a sign that things may really be improving.
The housing numbers for June were positive in terms of sales with new construction reporting a gain of 11% and re-sales posting a 4% increase. The flip side shows that prices were still falling. Some of these sales can certainly be attributed to the $8,000 first-time buyer tax credit, but they’re still sales. So we have the good and the bad, but it is nowhere near as ugly.
More Pain to Come
Joshua Dorkin
